| Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 1,885,403,158 visitors served. |
|
Dictionary/ thesaurus | Medical dictionary | Legal dictionary | Financial dictionary | Acronyms | Idioms | Encyclopedia | Wikipedia encyclopedia | ? |
DuPont Identity |
0.02 sec. |
|
DuPont Identity An alternative calculation to determine the return on equity of an investment. DuPont identity utilizes the investment's gross book value instead of its net book value. It is calculated as: DuPont identity return on equity = (Profits / Sales) * (Sales / Assets) * (Assets / Equity) The theory behind DuPont identity states that forms of return on equity using net book value discourage investment in new, potentially risky ventures because they underestimate the return for the first few years of the investment. The DuPont calculation attempts to remedy this situation. It is also called DuPont analysis. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
|
| ? Mentioned in | |
|---|---|
|
| Financial Dictionary |
| Free Tools: |
For surfers:
Free toolbar & extensions |
Word of the Day |
Help
For webmasters: Free content | Linking | Lookup box | Double-click lookup | Partner with us |
|---|